Sega Sammy has launched its monetary outcomes for the 9 months ended December 31, 2025, noting important declines in working and unusual earnings resulting from new sport releases that failed to satisfy gross sales expectations.
The corporate additionally wrote down the worth of Offended Birds developer Rovio, acquired in 2023 for $776 million, leading to an impairment loss of virtually $200 million.
Sega mentioned Rovio “discovered it troublesome to advance its initially deliberate enterprise growth” and consequently “the profitability of this enterprise has fallen beneath the preliminary forecast.”
Here is what you could know:
The numbers
For the 9 months ended December 31, 2025
- Internet gross sales: ¥335.2 billion ($2.1 billion, up 4% year-on-year)
- Working earnings: ¥19.8 billion ($129.2 million, down 54.6% year-on-year)
- Extraordinary earnings: ¥23.8 billion ($155.3 million, down 51.8% year-on-year)
The highlights
Sega noticed a substantial decline in its Leisure Contents phase, with working earnings dropping 31% to ¥23.7 billion ($154.8 million) and unusual earnings falling 34% to ¥24.6 billion ($160.7 million).
Internet gross sales remained secure at ¥242.2 billion ($1.58 billion), up from ¥238.6 billion ($1.55 billion) in the identical interval final yr.
The corporate acknowledged that new full sport and free-to-play titles underperformed, whereas current free-to-play titles “carried out steadily.” Income from licensing, subscriptions, DLC, and animation “surpassed expectations.”
Within the third quarter, Sega launched two new titles: Soccer Supervisor 26 and Sonic Rumble. Sonic Rumble didn’t meet expectations, particularly in buyer acquisition.
Sega described Rovio’s Q3 efficiency as “sluggish,” stating it “fell considerably in need of the preliminary forecast resulting from speedy adjustments available in the market setting and different elements.”
The writer famous that though Rovio has “robust growth and operational capabilities” and was acquired to “speed up Sega’s enterprise enlargement” in cell gaming, the market “quickly modified” in a short while.
Sega acknowledged that elevated competitors and the emergence of main titles contributed to Rovio’s underperformance.
After assessment, Sega decided that “the recoverable quantity associated to Rovio considerably fell beneath its carrying quantity,” leading to an impairment loss of ¥30.4 billion ($198.6 million) within the third quarter.
In response, Sega will focus sport growth on “mainstay IPs,” promote its transmedia technique, and strengthen its administration system.
This contains appointing Daniel Svärd as Rovio’s COO, previously head of dwell sport studios at King.
Rovio goals to “leverage operational experience cultivated via Sweet Crush collection and different titles to enhance the efficiency of current titles and lead undertaking promotion towards the success of latest titles.”
For its Leisure Contents enterprise, Sega plans to launch 4 main new titles for its “mainstay IPs,” improve “gross sales capabilities” to maximise every title’s potential, and proceed increasing its transmedia enterprise.
Wanting forward, Sega has up to date its monetary forecast from what was introduced on Might 12, 2025.
The writer now expects internet gross sales of ¥490 billion ($3.2 billion), up from ¥475 billion ($3.1 billion), and working earnings of ¥40 billion ($261.5 million), down from ¥53 billion ($346.6 million).